Live Sensex and Nifty coverage: Sensex recovers to end the day on flat margin

Last Updated: Tue, Sep 26, 2017 16:20 hrs

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Sify Editors @ 4:30 PM
Sensex recovers to end the day on flat margin

The markets until the end of morning session looked firm to repeat a 300 point rout, but thankfully buying sentiments from metal and realty stocks helped the BSE benchmark to end on a flat note.

The Sensex ended the day marginally down by 0.08% or 26.87 points at 31599.76, ably guided by stocks such as ONGC, which showed an intra-day gain of 4.32%. News of ONGC acquiring a major stake in HPCL managed to rope in investor interest.

Tata Steel (up by 2.19%), Axis Bank (1.82%), and Infy (1.40%) were the other top stocks in the session. Dr. Reddy (down by 2.10%), Asian Paints (2.28%), and Hindustan Unilever (2.31%) were relegated to the bottom of the chart.

On the broader side, surprisingly small cap stocks had a positive day. BSE Small Cap was up by 1.08% while the Select Small Cap Index was trading favorably with an intra-day gain of 1.19%.

Metal (up by 2.49%) and Realty (up by 2.64%) were the top sectoral stocks in the trading session.

Realty scrips such as Prestige (up by 5.95%), Phoenix Limited (5.02%), IB real estate (4.91%), Godrej Group (3.62%) were the top performers. Among metal stocks top performers included Vedanta (up by 3.82%), National Aluminium (2.95%), and Jindal Steel (2.47%).

Telecom (down 1.14%) scrips bore the brunt of the loss on Tuesday. Although ITI (up by 9.30%), and Tejas Networks (5.71%), were the star performers in the sector, the losses from RCom (down by 1.25%), Vindhya Telecom (1.40%), HFCL (4.83%) brought the sector down.

The top performers in the session include, Edelweiss (gained a 23.05 point or 9.04% gain), Godfrey Phillips (up by 76 points or 7.87%), DHFL (up by 31.30 points or 5.96%). Central Bank, JP Associates and Rural Electrification Corporation Limited were the losers from the session.

Sify Editors @ 4:10 PM
Mutual funds may get nod for trading in commodity derivatives in 6 months

India's capital markets regulator is likely to allow mutual funds to trade in commodity derivatives and a decision is expected within six months, a senior official said on Tuesday.

Such a move would help deepen the market and provide hedging opportunities to large companies that trade overseas due to limited liquidity at local exchanges.

Portfolio management services and foreign trading houses that export or import from India could also be allowed to participate in commodity futures, said S.K. Mohanty, an executive director with the Securities and Exchange Board of India.

"The participation (of mutual funds) is in an advanced stage of examination," Mohanty told reporters on the sidelines of an industry conference.

"We have taken the feedback. On the basis of that we will finalise the regulatory mechanism," he said.

Asia's third-biggest economy allowed commodity futures trading in 2003, but has so far kept out foreign investors, banks and mutual funds, among others.

In June, SEBI for the first time allowed institutional investors to trade in commodity derivatives as it said hedge funds registered as category III Alternative Investment Funds (AIFs) can invest in the segment.

Sify Editors @ 3:40 PM
Pharma firms to face medium-term growth pressure in Africa, LATAM - Ind-Ra

Indian pharma exporters are likely to face growth pressure in semi-regulated markets such as Africa and Latin America, says India Ratings and Research.

Weak economic and political conditions in Africa and currency volatility in LATAM are likely to weigh on consumption of pharmaceutical formulations, impacting growth prospects over the medium term, the credit rating agency adds.

In FY17, India's exports of pharmaceutical formulations or finished products to the semi-regulated markets grew at the weakest pace of 0.7 pct in the last seven years, after exhibiting robust growth till FY14, Ind-Ra says.

The ratings agency attributes the underperformance in FY17 to a 7 pct y-o-y and 5.1 pct y-o-y decline in exports to Africa and LATAM, respectively.

Up to Monday's close, shares of major exporters such as Dr.Reddy's Laboratories Ltd and Sun Pharmaceutical Industries Ltd had fallen about 20 pct each this year, while Lupin Ltd dropped 33 pct.

The Nifty Pharma index has posted six losses on month so far this year versus two losses on month for the broader NSE index.

Sify Editors @ 3:05 PM
D-Mart vaults after Goldman Sachs raise stock's rating

Avenue Supermarts is on song today, with investors thronging the counter after Goldman Sachs recommended a buy on the stock and setting a target price way above its last closing price.

Shares of Avenue Supermarts, the parent of department stores chain D-Mart, skyrocketed to an all-time high of Rs 1217 thanks to hectic buying at the counter. The brokerage expects the stock to move past Rs 1500 in about a year.

In its note, Goldman Sachs said that Avenue Supermarts will benefit immensely from tax reforms as grocery market share shifts to the organised sector. The firm says that Avenue Supermarts' cash return on capital invested remains better than its global retail peers. Avenue Supermarts' EBIT may rise 13 times in ten years, it adds.

Goldman Sachs believes Avenue Supermarts can see a 30% growth for the next ten years. Only a higher than expected competition from e-commerce, especially in the urban mass cohort, could pose a risk to Avenue's growth, it adds.

Following the sharp jump in the session, Avenue Supermarts' market capitalization surged past Rs 75,000 crore to around Rs 75,300 crore. After its stellar debut in March this year, following a highly successful IPO, Avenue Supermarts has been faring exceptionally well in the market.

The stock, which touched a high of Rs 1217, is currently at Rs 1128, up nearly 11% from its previous closing price.

Sify Editors @ 1:30 PM
Godrej Agrovet sets price range for up to $ 178 million IPO

India's Godrej Agrovet Ltd has set a price range of 450-460 rupees a share for its initial public offering to raise up to 11.6 billion rupees ($177.6 million), according to a public notice on Tuesday.

The animal-feed producer is selling new shares worth up to 2.92 billion rupees in the IPO, while its main shareholder Godrej Industries is selling secondary shares of up to 3 billion rupees.

A unit of Singapore's Temasek Holdings will sell up to 12.3 million shares, which at the upper end of the price range would be worth 5.66 billion rupees.

Kotak Investment Banking, Axis Capital and Credit Suisse are the banks managing the IPO that runs Oct. 4-Oct. 6.

Sify Editors @ 12:30 PM
Maruti Suzuki India near-term outlook positive - Credit Suisse

Credit Suisse expects Maruti Suzuki India Ltd's Q2 margins to improve Q-o-Q on better product mix and operating leverage; keeps "neutral" rating on carmaker.

No discounts being offered on its new models (New Dzire, Baleno and Brezza) due to waiting periods, hence margins likely to trend up on a q-o-q basis, analysts at Credit Suisse add.

The analysts believe the Indian carmaker could benefit from lower royalty payouts as its share of locally designed models rise.

Co has said it aims to come up with new models for the Indian market every year starting 2019.

Margins from the company's Gujarat plant to improve once it begins powertrain manufacturing there and on full utilisation of the plant; first line will reach full utilisation in Q4 - Credit Suisse.

Out of 49 analysts covering the stock, 35 have rated it "buy" or higher while 13 have a "hold" rating on the stock and one rates it "sell".

Up to Monday's close, Maruti's shares have risen nearly 50 pct this year, compared with an 18 pct increase in the Nifty Auto index.

Sify Editors @ 11:30 AM
Sensex extends fall as North Korea tensions rise

Sensex fell on Tuesday in line with Asia and were headed for a sixth straight session of declines, as continued tensions on the Korean Peninsula prompted investors to move into safer assets.

North Korea's foreign minister said on Monday that the United States had declared war on the country and Pyongyang reserved the right to take countermeasures.

Asian shares withered, with MSCI's broadest index of Asia-Pacific shares outside Japan shedding as much as 0.7 percent to a near three-week low.

"Generally, there's a little bit of spookiness which has come about because of geopolitical events surrounding North Korea," said Nitasha Shankar, senior vice president and head of research, YES Securities.

Investors await U.S. Federal Reserve Chair Janet Yellen's speech later in the day for clarity on whether the Fed will stick to its plan to raise interest rates in December.

The broader NSE index was down 0.44 percent at 9,828.85, heading for a sixth straight session of losses after hitting a record high last week.

Technicals suggest the index is unable to hold the 61.8 percent Fibonacci retracement level at 9,874, of the short-term uptrend from the Aug. 11 low to the Sept. 19 high. This suggests the index may correct further.

The benchmark BSE index was 0.41 percent lower at 31,498.54.

Sify Editors @ 10:45 AM
Geo-political tensions drag equity markets lower

Key Indian equity indices traded on a flat-to-negative note during the early morning trade session on Tuesday, as rising geo-political tensions in the Korean Peninsula dented investors' risk-taking appetite.

According to market observers, broadly negative Asian indices and subdued domestic growth outlook too dragged the key indices lower.

The 30-scrip Sensitive Index (Sensex), traded 23 points or 0.07 per cent lower.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was also trading at 5.50 points or 0.06 per cent lower at 9,867.10 points.

The Sensex of the BSE, which opened at 31,685.81 points, traded at 31,603.66 points, lower 22.97 points or 0.07 per cent from the previous day's close at 31,626.63 points.

The Sensex touched a high of 31,693.59 points and a low of 31,567.51 points in the trade so far.

Sify Editors @ 10:15 AM
Deep Industries spurt on large volumes

Deep Industries shares rallied sharply on Tuesday morning, on unusually large volumes.

On BSE, the Deep Industries counter has clocked a volume of nearly 9.2 lakh shares so far in the session, as compared to average daily volume of just around 35,000 shares.

Th stock touched a high of Rs 250, and after declining to around Rs 235 subsequently, has edged up to Rs 243 now, up 14% from its previous closing price. The stock,which touched a high of Rs 343.70 in March this year, declined to a low of Rs 192 on the National Stock Exchange on August 11.

Shares in Deep Industries are being acquired by Shantilal Savia Family Trust. Earlier this month, the trust had announced that it has received an order from SEBI, granting dispensation under Regulation 3 and 4 of the Takeover Regulations for acquisition of shares of Deep Industies LImited.

Following this, the Trust proposed to acquire about 32 lakh shares of Deep Industries Limited from members of the promoter group and that the acquisition be made on the stock exchanges in a phased manner at the prevailing market price on the date of acquisition.

On the National Stock Exchange, the Deep Industries counter has recorded a volume of 1.08 million shares so far in the session.

Deep Industries Limited, an integrated oil & gas company, reported a net profit of Rs 21.04 crore for the quarter ended June 2017, lower than net profit of Rs 23.23 crore in the preceding quarter. In the quarter ended June 2016, the company had posted a net profit of Rs 16.31 crore. Net sales increased to Rs 73.08 crore in the June 2017 quarter, up from Rs 64.39 crore in the year-ago quarter.

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